Southcentral Alaska utilities have explored ways to overcome a reduced gas supply, inlcuding importation of LNG.
dock infrastructure which was histor- ically capable of handling LNG vessels up to 138,000 cubic meters (approxi- mately 2.9 billion cubic feet) of natu- ral gas,” Harvest officials said. “This infrastructure, combined with exist- ing FERC approvals, positions the fa- cility to meet near-term energy needs while longer-term alternatives are developed.” Marathon operates a nearby refin- ery at Nikiski that mainly makes jet fuel and gasoline for the Alaska mar- ket. The company uses natural gas at the refinery and acquired the LNG export plant from ConocoPhillips as an option to import LNG for the re- finery’s needs. Marathon also applied for, and re- ceived, a FERC license to convert the plant from an export to import facility. Chugach Electric is part of the deal as a customer to buy LNG brought in by Harvest other regional electric utilities such as Matanuska Electric Association and Homer Electric, along with Enstar, who will be able to make
purchases. The utilities, along with Hilcorp, now the region’s major gas producer, are also moving the expand gas stor- age capabilities using depleted gas reservoirs to bolster regional energy security. Enstar operates the Cook Inlet Nat- ural Gas Storage Alaska facility on the Kenai Peninsula, which is being ex- panded, and Hilcorp and Chugach are studying the possibility of storing gas in depleted gas reservoirs in the area. Enstar has meanwhile been work- ing on its own LNG import plan with Glenfarne, a New York-based compa- ny that develops LNG and power gen- eration projects. This project, also at Nikiski, would require construction of new LNG import facilities such as a terminal and storage tank. This is in contrast with the Har- vest-Marathon deal that would use the existing facilities at the former ConocoPhillips plant.
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Over half of Alaska’s population lives in the region. The utilities, in- cluding Chugach, have been serious- ly concerned with reduced gas supply from aging producing fields and have been exploring options to import LNG, most likely from British Columbia. “It’s positive to hear about another possible option to provide a firm gas supply to serve our members,” said Julie Estey, spokeswoman for Mata- nuska Electric Association. “MEA will continue to work with our utility partners to develop the best project to bridge the gap toward a more diversi- fied energy future” MEA is working on other options to diversity its sources of fuel away from natural gas, Estey said. The project at Nikiski announced Feb. 6, “leverages MPC’s (Marathon) legacy LNG export infrastructure to alleviate a potential short-term nat- ural gas shortage facing Southcentral Alaska. The facility includes existing
— Tim Bradner
THE LINK: MARCH 2025
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